Ottawa is still playing favourites with the carbon tax
in the province surging on July 1. Gasoline taxes rose an eye-popping 16 cents a litre on Canada Day, representing five years’ worth of carbon-tax increases .
Only now is carbon pricing truly coming into force in Atlantic Canada, starting with the July 1 imposition of a federal carbon tax in place of weaker provincial versions in Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. However, Mr. Guilbeault’s work is not done. For a start, there are the deep reductions to provincial fuel excise taxes that remain in place. Essentially, the provinces are transferring cash to Ottawa by reducing their revenue at the pump as Ottawa increases its carbon tax. Ottawa, rightly, told Saskatchewan that it would not allow the province to neuter the carbon tax in that province by reducing excise taxes. That same principle should be applied within Atlantic Canada.
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